The Central Bank of Nigeria (CBN) has revoked the operating licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This was announced in a statement on Tuesday, signed by the CBN Acting Director, Corporate Communications, Hakama Sidi Ali.
Naija News reports that the operational licenses of the two primary mortgage banks were revoked based on multiple regulatory violations and financial distress.
The apex bank explained that the decision was taken as part of efforts to reposition the mortgage subsector and promote a culture of compliance with relevant laws and regulations.
The CBN added that its actions are backed by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
The affected institutions were found to have breached various provisions, including:
– Failure to meet the minimum paid-up share capital requirement for their license category.
– Having insufficient assets to cover liabilities.
– Being critically undercapitalized, with capital adequacy ratios below the CBN’s prudential minimum.
– Non-compliance with several directives and obligations imposed by the regulator.
Furthermore, the two institutions have faced longstanding challenges, including past complaints from depositors, allegations of corporate governance issues, and delisting from the Nigerian Exchange (NGX) in 2024 due to failure to submit audited accounts for over six years.
